Blomkest Fertilizer, Inc. v. Postash Corp. of Saskatchewan, Inc. case brief notes

Blomkest Fertilizer, Inc. v. Postash Corp. of Saskatchewan, Inc. case brief notes

Plus Factor:	Evidence For	Evidence Against
Communication:	Periodic price verification calls - (high level executive calls beginning 1987) Solicitations	Calls were subsequent to the price increase Calls infrequent, sporadic
No legit justification:	Price was not the projected price expected based upon the Suspension Agreement No justification for the price verification calls	Alternative explanation based upon the Suspension Agreement Privatization of PCS explains change in behavior
Irrational w/o Agreement:	"market correction" program that lowers prices to deter "cheating"
Market Structure:	Oligopoly Fungible product (potash) Inelastic demand? Was there evidence of this? Barriers to entry (again, was there evidence?) Industry excess capacity	Cartel is not inevitable in oligopoly Industry excess capacity

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